Here are answers to readers’ queries on the performance of their stock holdings.
What are the prospects for Gruh Finance and PI Industries bought at ₹840?
Jashavant
Gruh Finance (₹335.4): The long-term trend is up for the stock of Gruh Finance. Since June, the stock has been in a sideways consolidation phase in the ₹300-345 range. The stock is range-bound within the uptrend; however, the bias is positive. It recently breached the 21- and 50-day moving averages. The indicators in the daily and weekly chart hover sideways with an upward bias. The stock faces a key resistance ahead at ₹345. An emphatic break-out of this level will reinforce the uptrend and take the stock higher to ₹360 and ₹380 levels in the medium term. Further, rally beyond ₹380 can take it to ₹400 in the long term. On the other hand, a conclusive plunge below the key support at ₹300 will bring selling pressure and drag the stock to ₹280 and ₹265 levels. Next significant support is at ₹250. The long-term uptrend will continue to remain in place as long as the stock trades above ₹250. Investors with a long-term perspective can stay invested with a stop-loss at ₹240. Subsequent support at ₹230 and ₹200 can come into play on a decisive fall below ₹250 levels.
PI Industries (₹766.2): After registering a new high at ₹1,035 in January 2018, the stock of PI Industries began to decline.
Since then, the stock has been in an intermediate-term downtrend. However, it found support at ₹750 in late June this year and began to move sideways in the band between ₹750 and ₹820. Within the downtrend, the stock moves sideways with a negative bias. It has a significant long-term support in the ₹720-750 range.
An emphatic plunge below this support band will strengthen the downtrend and drag the stock to ₹700 and ₹650 levels.
The key long-term trend-deciding level is at ₹550, and as long as the stock trades above this base level, the long-term uptrend will remain in place. However, a decisive fall below ₹550 will alter the uptrend and drag the stock to ₹500.
Investors with a long-term perspective can stay invested with a stop-loss at ₹535 levels. An upward reversal from the key support at ₹720 or ₹700 can take the stock up to ₹800 or ₹820 levels.
An emphatic break-out of the sideways range on the upside can take the stock higher to ₹850 and ₹900 levels in the medium term.
You can consider buying the stock on a rally above ₹820 with a stop-loss at ₹790. To alter the intermediate-term downtrend, a conclusive breakthrough of the key long-term barrier at ₹900 is required to take the stock ₹950 and ₹1000 in the long run.
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